Warranty, Greater Value Key to Selling Pre-Owned Helicopters
A new program from Pratt & Whitney Canada aims to help accelerate the sales process and give buyers greater value and peace of mind for pre-owned P&WC-powered helicopters, including those brokered by Rotortrade, an independent helicopter dealer.
Earlier this year, P&WC introduced its Certified Pre-Owned (CPO) engine program for three of its most popular helicopter engines – the PT6C-67C, PW206C and PW207C. Recently, Rotortrade – working closely with both P&WC and with Leonardo Helicopters – brokered the sale of a pre-owned AW109SP helicopter to a buyer in Europe. The helicopter is powered by two PW206C engines. Rotortrade is also a distributor of pre-owned Leonardo helicopters.
Because they had a warranty on the engines from P&WC and a warranty from Leonardo on the airframe, the buyer felt they were getting an entirely new helicopter directly from the OEM.
It was with that “like new” experience in mind that P&WC designed its CPO program. Under the program, operators receive a two year/500-hour engine warranty, whichever comes first. The program also includes: six months of complimentary technical publications for the engines, a credit that can be applied to P&WC’s Eagle Service™ Plan (ESP™) pay-per-hour engine maintenance program, discounts on engine-maintenance training provided through FlightSafety International, and other incentives. The P&WC CPO program was originally launched in 2017 for PT6A turboprop engines.
To qualify under the CPO program, the engine must have been maintained in a P&WC-owned or designated facility and contain only genuine P&WC parts. The engine must also pass a thorough inspection.
Some OEMs are reluctant to adopt measures to help support buyers and sellers of pre-owned helicopters. P&WC and Leonardo are leading the industry by focusing on the needs of potential buyers, as seen in their efforts to offer certified pre-owned programs. Buyers who are well treated and feel that their business is valued are more likely to use OEM after-market services. This is supported by the fact they were drawn to OEM certification in the first place.
As a pre-owned helicopter dealer, Rotortrade provides a professional, structured and value-add process that assures buyers they are acquiring a reliable product that has been cared for with the highest of standards prior to re-sale.
Philippe points out that the buyer in the recent AW109SP transaction ended up with a warrantied helicopter that’s only five years old while paying roughly 60 per cent less than what a new helicopter would cost.
There are other factors at play as well, says Philippe. For example, most buyers of pre-owned helicopters will finance the transaction through a lending institution. Lenders are much more willing to underwrite a purchase if the helicopter in question has been maintained by the engine and airframe OEMs, plus given renewed warranties as part of the sales process. A pre-owned helicopter with an OEM service record and renewed warranty carries better value.
In this manner, the certified pre-owned model, supported by the OEMs, delivers concrete benefits to both the buyer and the seller.
I think we are reaching a point where the pre-owned, certified model will become more and more popular with prospective buyers,” says Philippe. “Since we delivered the AW109SP last month, all prospective buyers of AW109s we are currently working with are demanding the CPO option upfront. It’s a program that’s really selling itself.”
The Certified Pre-Owned Engine program is one of many P&WC initiatives to support customers. Contact us at email@example.com to learn about this initiative. If you are looking for a maintenance solution, have a look at our competitive programs for PT6A and helicopter engines.